EDMONTON, Aug. 12, 2014 /CNW/ - The Cash Store Financial Services Inc.
("Cash Store Financial" or the "Company") announced that it has
obtained an order from the Ontario Superior Court of Justice
(Commercial List) ("the Court") granting a stay extension under its
current Companies' Creditors Arrangement Act ("CCAA") proceedings to
September 30, 2014.
The Court also authorized the Company and its subsidiaries to enter into
an amendment to its amended and restated debtor-in-possession ("DIP")
financing agreement ("Further Amended DIP Agreement") pursuant to which
an aggregate amount of up to $5 million will be available to the
Company to permit it to continue operations during the CCAA proceedings
in an effort to maximize enterprise value for all stakeholders. Further
DIP financing is required in order to continue going concern operations
and attempt to complete a sale of the Company's business pursuant to
the Court-approved Sale Process, under which prospective purchasers
have had the opportunity to submit a bid for the Company's property.
Discussions and negotiations with potential bidders are ongoing under
the Sales Process. The Further Amended DIP Agreement will provide the
necessary liquidity throughout the stay extension to continue to
negotiate a sale transaction to achieve a value maximizing going
The Court also today approved the Sixth, Seventh and Eighth Reports of
the Monitor, FTI Consulting Canada Inc., dated June 6, 2014, June 13,
2014, and July 21, 2014 respectively. Copies of these Reports, as well
as other orders of the Court, including details on the sales process,
as well as other details regarding the Company's CCAA proceedings are
available on the Monitor's website at http://cfcanada.fticonsulting.com/cashstorefinancial.
Cash Store Financial remains open for business. Cash Store will continue
to provide updates on its restructuring and the Cash Store Transaction
as matters advance.
About Cash Store Financial
Cash Store Financial and Instaloans primarily act as lenders to
facilitate short-term advances and provide other financial services to
income-earning consumers who may not be able to obtain them from
traditional banks. Cash Store Financial also provides private-label
Cash Store Financial is a Canadian corporation that is not affiliated
with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd.
operates in the United States under the name "Cash Store". Cash Store
Financial does not do business under the name "Cash Store" in the
United States and does not own or provide any consumer lending services
in the United States.
Forward Looking Statements:
This news release contains certain forward-looking statements about the
objectives, strategies, financial conditions, results of operations and
businesses of Cash Store Financial. Statements that are not historical
facts are forward-looking and are subject to important risks,
uncertainties and assumptions. These statements are based on our
current expectations about our business, and upon various estimates and
assumptions. The results or events predicted in these forward-looking
statements may differ materially from actual results or events if known
or unknown risks, trends or uncertainties affect our business, or if
our estimates or assumptions turn out to be inaccurate. As a result,
there is no assurance that the circumstances described in any
forward-looking statement will materialize. Significant and reasonably
foreseeable factors that could cause our results to differ materially
from our current expectations, include, but are not limited to, any
decision of the Ontario Superior Court of Justice in the CCAA
proceedings that is adverse to Cash Store Financial, the inability of
Cash Store Financial to fulfill the conditions to funding under any
Debtor-in-Possession ("DIP") financing agreement entered into by Cash
Store Financial, and other factors that could affect Cash Store
Financial's ability to continue its operations during the CCAA
proceeding, including the factors that are discussed in the section
entitled "Risk Factors" contained in our Annual Information Form for
the year ended September 30, 2013 dated December 11, 2013 filed by The
Cash Store Financial with the Canadian securities commissions
(available on SEDAR at http://www.sedar.com), as updated in our most recent Management's Discussion and Analysis
for the three months ended December 31, 2013. Unless required by law,
we disclaim any intention or obligation to update any forward-looking
statement even if new information becomes available, as a result of
future events or for any other reason.
SOURCE: The Cash Store Financial Services Inc.
For further information:
Chief Restructuring Officer